Investing in property has proven a hugely successful financial pursuit in recent years, with over 1.8 million Australians currently owning an investment property. Offering a wide range of benefits from a consistent passive income to the several tax benefits you may accrue, property investment is a fantastic method of making your money work for you! However, these investments are only effective when you invest in the property that is right for you. 

In choosing your investment property, there are a number of factors you need to keep in mind, and it’s natural for you to think, “is there a mortgage broker near me to help me through this process?”. Thankfully there is, and the team at Greenline Home Loans has devised the following tips to help you make these important financial decisions. 

Desired Location

Where you’re a pair of first home buyers or a seasoned investment professional, an absolutely crucial factor to consider is location. When you’re searching for your investment property, you must ensure you select a location that has both tenancy demand to secure the property’s immediate future, and owner-occupier demand to ensure you will be able to sell the property in the future. 

A deal-breaker on location is its proximity to transport links to ensure a smooth and easy commute for your tenants, whilst also ensuring that key lifestyle facilities are within arms reach of the property. These may include parks, shopping centres, restaurants and cafes. The closer your investment property is to these key facilities, the higher your rental yield is likely to be. 

It’s important to also consider whether the area is likely to provide you with capital growth, as choosing the right location can account for 80% of your property’s capital growth. By investing in a growing locality, most favourably before it is subject to high demand, is a great way to ensure your investment property experiences capital growth throughout the duration of your investment.

Property Type

In searching for your investment property, it’s vital that you consider which property type will suit your budget, but also the demand conditions that the location is likely to be subject to in the future. For instance, investing in an area with an older population may mean that investment into a townhouse property spanning over three levels may not be the wisest investment decision. 

By the same token, investing in an area populated by young families of first home buyers and high tenancy demand makes the purchase of a property with ample living space a suitable decision. To maximise the return you receive on your investment, it’s always important to purchase a property that is likely to satisfy the demands of the individuals most likely to reside within the area. Contacting the expert team at Greenline will help you gain a greater understanding of the demographics and demand patterns within your chosen area, and help you determine whether an apartment, house, or townhouse will best suit your expectations and the market demand. 

Maintenance Requirements

Once you’ve decided upon the location and type of property you’d like to invest in, you must consider the additional costs and maintenance that will be associated with the occupancy of the property, just as you would if you were moving in yourself. Keep in mind that a home with a large garden and swimming pool will require greater effort and cost in preparing it for tenancy, and by holding greater maintenance requirements, you may be limiting your potential pool of tenants. 

Similarly, an apartment situated in a luxurious complex with multiple, high-quality communal amenities will result in higher strata fees, and these expenses must be covered by the property owner rather than the tenant. This would limit your potential return and subject you to high recurring financial costs. Generally, investment into properties with minimal maintenance requirements and ongoing costs makes for a sound investment decision that will maximise your return.

Why Choose Greenline For Your Investment Property Home Loans?

Before you invest in a property, it’s crucial that you contact an expert team of lending professionals who can offer you individualised, specialist advice on your investment. If you require an investment property home loan to help finance the purchase of your additional property, look no further than Greenline, as we offer the lower rates on these all-important home loans, helping you secure your financial future with minimal hassle. 

With many lenders in the market offering their services, it can be difficult to know which company is right for you. However, if you’d like to invest in property but you’re in need of expert advice from a company that will make the process easy to understand and reduce your stress, a simple search for a “mortgage broker near me” will direct you to our devoted team of professionals. 

Reach out to Greenline Home Loans today!

Whether you’re looking to purchase an investment property, require information on home loans, or you’re first home buyers looking for expert advice, get in touch with our team of experienced brokers at Greenline Home Loans. With access to 50 lenders and a strong relationship with several major banks, we’re always able to assist you and offer a customised solution that will meet your needs.

At Greenline Home Loans, we will tailor the best solution for your requirements, and take you through the entire process from the first day you consider a construction loan or small business loan. Contact our friendly team of brokers to speak about low-rate home loans on 1800 705 505 to get started today!

Why Is Leveraging In Property Lucrative?

Financial leverage refers to borrowing money in order to achieve bigger property growth and investment. It allows an investor to place more money into purchasing an asset than they otherwise would have been able to. Ultimately, this creates the possibility for increased gains.

The bounds for using leverage is that by obtaining serval sources of capital, an investor is able to enhance the prospective return generated on their equity and unlock deals at a scale otherwise inaccessible due to capital constraints.

So how does leveraging in property work?

If you are a first home buyer and you have, for example, applied for a loan of $250,000, you can use this money to purchase an apartment outright. You would then obtain a strong cash flow that an unmortgaged investment would bring in due course. On the other hand, you could use this money to place a deposit on five separate apartments. Presuming that these properties that you purchased were bought in a prime location with the potential for growth and had neutral to positive cash flow, all of these five properties would admirably be looking after themselves in regard to cash flow while also increasing in value in the long term.

Benefits Of Leveraging In Property For A First Home Buyer

• You Get More For Less

In instances where you place all your cash into one investment property, that is it. Whereas, in cases where you leverage in property, you have the option to go for another property. You have the ability to obtain extra mortgages meaning you are able to own several properties. Assuming that each of these properties is acquiring reasonable returns, this would transcribe to more rental income and real estate wealth on your behalf.

• Less Risky

The power of leveraging in property lowers your risk. If you use all of your cash to obtain only one property investment and it does not perform well, it can result in a bad investment decision, and you will be left with nothing. Contrastingly, if you obtain several leveraged properties, you will still be acquiring income in the chance that one or two of your properties perform poorly.

• Tax Benefits

On the occasion that one of your tenants decides to relocate, you will be left to offset the expenses that go along with it. You will certainly be making negative cash flow, but with many investment properties in your portfolio, you will be able to make up this income from the rest of your investments in order to offset such expenses.

Be Smart With Leveraging & Minimise Risk

In order to get the most out of your investment, you should be highly meticulous in minimising your risk and maximising your investment. Here are some tips that investors should follow when leveraging in property.

• Purchase in metro areas where there is a demand for renters and a chance that properties are able to retain their value
• Purchase properties that have a potential for growth
• Buy properties that have a strong yield where they are able to pay themselves off
• Stay away from high-risk investment properties
• Have an exit strategy in place – if you had to sell quickly, would you be able to get your money back?
• Protect yourself against any unexpected costs – an adequate buffer in place, such as 2 months’ worth of rent
• Get a payment you will be able to live with – find a balance between your down payment and your monthly payments
• Be conservative in your appreciation expectation

How Can I Start Leveraging In Property Now?

Our mortgage brokers here at Greenline Home Loans are able to help you with the process of leveraging in property. When it comes to leverage, it is important that you have a clear and precise process and plan in place to figure out how you are going to set out your finances. If you plan on purchasing two investment properties, it is important that you have enough equity that allows you to cover the costs of the deposit, stamp duty as well as the buyer’s agent fees for both purchases.

Reach out to Greenline Home Loans today!

If you are a first home buyer, buying a residential property or wanting an interest-only residential home loan, get in touch with our team of experienced brokers at Greenline Home Loans. We have access to 50 lenders and a strong relationship with several major banks to assist you and offer a solution to suit your needs.

At Greenline Home Loans, we will tailor the best solution for your needs and walk with you hand in hand from the first day you consider leveraging a property. Contact our friendly team of brokers to speak about low-rate home loans on 1800 705 505 to get started today!

Have you recently been looking into the best home loans or commercial property loans for a possible investment property? Are you wanting to learn more about positive gearing and negative gearing and the effect this can have on your finances and properties? The team at Greenline Home Loans can help!

This article will help you understand what gearing is, the features of positive gearing and negative gearing, the benefits of both and tips to keep in mind to get the most out of your investment property.

What Is Gearing?

Gearing refers to when you borrow money to invest and is most commonly referred to when speaking about investment properties. Positive and negative gearing refers to when somebody buys a property, often an investment property, which is then rented out or brings in a form of income. Both positive and negative gearing strategies can have benefits and drawbacks, making it important to consider which best suits you, your personal circumstance including your income, debts, and financial position as well as your risk preferences. 

What is Depreciation? 

The depreciation of a property refers to natural wear and tear over time of a building’s structure and assets, which property investors can claim as tax deductions in each financial year. Depreciation is often linked to both positive and negative gearing as both depreciation and capital allowances are legitimate tax deductions which can be claimed. 

The main benefit of depreciation for a property which is positively geared is the reduction in the amount of tax payable. When you claim for depreciation on a property, the profit you make on the property will be lower meaning less tax will be payable. 

The main benefit of deprecation for a property that is negatively geared is an improved tax position. For a property which is negatively geared, when you claim for depreciation this can increase the overall loss of the investment property which can then be claimed as a tax deduction against personal income. As a result of this process, there will be a decrease in the investors tax liability which leads to a higher tax refund. 

Whether your property is positively or negatively geared, there are several benefits of utilising a depreciation schedule. Reach out to the friendly team at Greenline Home Loans today to find out more!

Understanding Negative Gearing And Its Benefits 

When the income from the property is less than the rental return, interest, or other related property costs, this is referred to as negative gearing. 

The main benefit of negative gearing is that any net rental income you may lose throughout the year may be offset against your salary or other income you may earn over the financial year. When this happens, it reduces your taxable income and how much tax you will need to pay. Overall, if you have a reduced taxable income, this could save you money in the long run. 

There are several other benefits of negative gearing which may include:

• Capital growth over time generally means the investment property should increase in market value 
• An overall reduction in tax liability 
• Having a regular income through the tenants 

It is important to keep risks in mind when considering negative gearing such as ongoing ownership costs, initial purchase costs and the responsibilities tied with becoming a landlord. Reach out to the team at Greenline Home Loans who can assist you with covering which risks you are willing to take, the best strategy and how your personal circumstances and financial situation relate to applying for commercial property loans or a home loan. 

Understanding Positive Gearing And Its Benefits

When the income from the property is more than the rental return, interest, or other related property costs, this is referred to as positive gearing. 

If you are making more money in comparison to your net rental income and other property related expenses, this can leave you with more money in your pocket which is often used to ensure that loan repayments are met, although it can be saved to assist with paying for external things. 

One thing to keep in mind regarding positive gearing is that your net rental income can be subjected to tax, which may impact the overall increase over time. It is important to consider your strategy and long-term goals when deciding on an investment property, which is why the team at Greenline Home Loans are here to help!

Consider Your Risks With Positive And Negative Gearing

It is important to consider your risks with positive and negative gearing strategies. In relation to negative gearing, it is recommended to choose your investment property carefully, you have a suitable income for the repayments you are required to make and for any property-related expenses and to consider any insurance you may require. 

Reach out to the friendly team at Greenline Home Loans who will be able to assist with the best home loans and commercial property loans for an investment property. The team will be able answer any questions you may have about positive and negative gearing strategies and which route is the best to take for your needs, personal circumstances, financial situation, and preferences!

Reach out to Greenline Home Loans today!

If you have been considering buying your first home and are looking for the best home loans, buying a residential property, wanting an interest-only residential home loan or are investigating commercial property loans, get in touch with our team of experienced brokers at Greenline Home Loans. We have access to 50 lenders and a strong relationship with several major banks to assist you and offer a solution to suit your needs.

At Greenline Home Loans, we will tailor the best solution for your needs and walk with you hand in hand from the first day you consider a construction loan or small business loan. Contact our friendly team of brokers to speak about low-rate home loans on 1800 705 505 to get started today!

Interest-only residential home loans are residential mortgages where your monthly repayments are composed of only the interest that is charged by your lender. 

They vary in difference compared to the traditional amortising loans, where monthly repayments are made up of both principal and interest. When both the principal and interest are paid, your loan balance is reduced during your loan term. Since interest is determined by the outstanding balance of your residential home loan, the specified amount of interest that you will be expected to pay will, in turn, also reduce.

On the other hand, when it comes to an interest-only loan, your loan balance during your loan term will not reduce due to the fact that your repayments will only cover the interest on the amount you have borrowed. Your loan balance is not reducing, and hence you will end up paying an increased amount of interest over the period of your loan.

If you are unsure if interest-only residential property loans are the right fit for you, we have outlined a few of the benefits that come along with an interest-only residential loan.

Very Suitable For Construction Loans & Valued-Added Projects

In the instance that an investor is constructing a property, there is a requirement to try and preserve as much cash as you can during the construction phase of the project. Correspondingly, a general construction loan contains a pre-funded interest reserve account from which interest-only repayments are withdrawn whilst the property is under construction. When the property has been built and has been tenanted, the payments of your loan change from interest-only to principal and interest in order to line up with the property’s enhanced income.

This notion is very similar when it comes to value-added projects. Investors have elevated upfront costs to renovate a property, and there is a necessity to utilise their capital for this purpose. Obtaining an interest-only loan is very beneficial for an investor as they are able to conserve their capital until the renovations are completed, and the property is capable enough to produce enough income to gradually write off the initial cost of the loan.

Stabilises & Advances Your Cash Flow

Prospering property investment is all about cash flow. Utilising an interest-only loan can enable you to be more in control of your cash flow over the period of your loan term. To make the most out of the compounding and leverage of your investment property, you need to hold your investment properties for an extended amount of time. Therefore, the only way to do this is by creating financial buffers or cash flow.

Interest-only home loan repayments allow you to pay the merest amount demanded by your loan. This then provides you with extra money in your pocket to pay for any added expenses such as council rates or repairs.

Allows You To Prioritise Your Debt Allocation

Interest-only loans for the purchasing of residential properties are very beneficial as it provides you with the ability to pay off your debt. Interest-only repayments indicate that you are servicing your loan whilst your property advances in value. Furthermore, these interest-only repayments are also deductible from your income, ultimately reducing your tax.

In the meantime, with an interest-only residential loan, you have the ability to pay off any non-deductible debt, such as your credit cards or your car. Paying these debts off should be a priority.

Use Of Offset Accounts Reduce Your Interest-Only Repayments Even Further

An offset account is a simple transaction account that enables you to utilise your surplus cash in order to offset against the interest applicable to your loan. They work by providing you with the ability to transfer any additional savings that you have into an account that is then linked towards your mortgage. This extra cash is used to counteract your mortgage and hence minimises your interest repayment amount.

Proves To Be Very Tax Effective

In Australia, it is acceptable for all investors to claim back any costs that are linked with owning assets, and this does involve interest on residential investment property loans. In regards to property investors, the interest element of their residential property loans is added to the annual costs of retaining a real estate investment. Needless to say, this is offset by the income that is obtained through rent.

Making use of interest-only residential home loans makes it effortless to determine what your annual repayments are.

Reach out to Greenline Home Loans today!

If you have been considering buying your first home, buying a residential property or wanting an interest-only residential home loan, get in touch with our team of experienced brokers at Greenline Home Loans. We have access to 50 lenders and a strong relationship with several major banks to assist you and offer a solution to suit your needs.

At Greenline Home Loans, we will tailor the best solution for your needs and walk with you hand in hand from the first day you consider a construction loan or small business loan. Contact our friendly team of brokers to speak about low-rate home loans on 1800 705 505 to get started today!

We have a team of experienced brokers at Greenline Home Loans who can assist you with acquiring and applying for commercial property loans, investment loans, home loans, bridging loans, debt consolidation and more. Our team can ensure we offer top customer service, provide personalised advice, and guide you through the process of an investment or commercial property loan.

Our commercial property loans and investment property loans have several features which aim to assist you in meeting your financial and personal goals, with added ease and security.

Commercial property loans

You may be looking for a commercial property loan for many reasons. Commercial property loans are generally used when someone is looking to buy a premise for their company, although can sometimes be used when an investor is looking to diversify their property portfolio. Greenline Home Loans can assist you in finding the best commercial property loan for you and provide many benefits and offer a range of opportunities for you and your business, which may include:

• Onboarding of new staff members
• Implementation of new contracts
• Increased stock levels
• Equipment upgrades
• Initiatives and campaigns to boost new business

Greenline Home Loans can assist in all aspects of applying and acquiring your commercial property loan, and will work with you to understand your circumstances, goals, requirements, and budget. Our commercial property loans have 4 main features which include:

1. Flexibility with loan terms – a commercial property loan can generally be paid off over a shorter loan term in comparison to a home loan. Our commercial property loans are offered over various terms.
2. Interest-only repayments – commercial lenders may be able to negotiate interest-only repayments for commercial property loans for people who meet certain requirements such as a large deposit and strong cash flow.
3. Capitalising interest – there may be the possibility for the interest of your loan to be added onto the commercial property loan depending on some variables such as the loan staying below a certain threshold and under a specific percentage of the property value.
4. Line of credit facility – line of credit offers flexibility, control and value which may be beneficial for a commercial premise as maintenance and costs can add up.

Our experienced brokers at Greenline Home Loans can answer any questions you may have about commercial property loans, the process of applying and what the loans entail.

Investment property loans

A residential investment property may be an appealing option if you are looking to expand your investment portfolio or meet your financial and investment goals. Our friendly team aims to guide you throughout the process of securing an investment loan, from the application process through to post-settlement.

Greenline Home Loans can assist you in finding the best residential investment property loan for you and provide many benefits and offer a range of opportunities for you and your investment goals, which may include:

1. Interest-only payments – interest-only payments allows borrowers to only pay interest for a set amount of time, which generally ranges from 5-10 years which is a great way to save some extra money.
2. Offset account – an offset account can be used by investors as a form of a savings account, which may reduce the interest charged towards your loan depending on the balance of the offset account.
3. Repayment holiday – a repayment holiday can be used if the investor needs to take a break from repayments (which is generally available for up to 12 months) in the event that the property is unoccupied, and the investor is not able to rely on rental income.
4. Line of credit facility – a line of credit facility may be an option where the investor can borrow additional money without reapplying, and it will be secured against the equity in the property.

Our friendly team at Greenline Home Loans can assist you with any questions or queries you may have about investment loans. We aim to assist you in meeting your future and financial goals!

Reach out to Greenline Home Loans today!

If you have been considering buying a residential investment property, or are looking into commercial property loans, get in touch with our team of experienced brokers at Greenline Home Loans. We have access to 50 lenders and a strong relationship with several major banks to assist you and offer a solution to suit your needs.

At Greenline Home Loans we will tailor the best solution for your needs and walk with you hand in hand from the first day you consider purchasing an investment property to looking at investment property loans. Contact our friendly team of brokers to speak about investment loans, commercial property loans and home loans on 1800 705 505 to get started today!

At Greenline Home Loans, our aim is to provide the best home loans with the best home loan rates to suit people with various needs. We offer which include residential home loans, residential investment property loans, home loan refinancing, debt consolidation, bridging loans, construction loans and cash out equity release.

Below are some of the best home loans we offer at Greenline Home Loans and the features they offer:

Residential home loans

Applying for a residential home loan can be overwhelming and difficult to understand, that’s why our experienced team at Greenline Home Loans can provide you with all relevant information and assist you in the application process to ensure you have access to the best home loans.

We aim to provide low rate home loans, low fees and increased flexibility to suit your needs and requirements. Our professional brokers have extensive knowledge of Australian residential home loan markets! Get in contact with our friendly team at Greenline for assistance with a residential home loan.

Residential investment property loans

Residential investment property loans are a great option if you are looking to purchase an investment property, or you are looking to expand on the market as an experienced investor! At Greenline Home Loans, we offer low rate home loan options for residential investment property loans along, which have beneficial features such as the loan process being hassle free and convenient as well as having access to cost effective options.

Home loan refinancing

There are several reasons why you may want to refinance your home loans such as debt consolidation, a change in your personal circumstances, wanting to release equity from your property and more. Our home loan refinancing options provide a number of features which include equity access, lower interest rates, flexibility and the ability to reduce the length of your loan.

Our advisers at Greenline Home Loans can assist you with home loan refinancing by customising solutions to fit your requirements and needs with options such as interest-only loan terms, a combination of fixed and variable loans, offset and redraw facilities and guaranteed loans.

Debt consolidation

Debt consolidation will combine all your debts into a single loan or one credit card amount, which may make this a beneficial option if you have been managing multiple loans or credit cards and you are wanting to consolidate them. Debt consolidation will leave you with one loan which means you will now only have one repayment cycle. There are many product features of our debt consolidation at Greenline Home Loans which include a reduction in your costs which will maintain your debts, an improvement in your credit score, a fixed end date and simplified repayments.

If you are wanting to consolidate your debts into a single loan, manage your debt, easily track your repayments, save on loan fees, and interest rates, our team at Greenline Home Loans can assist you!

Bridging loans

A bridging loan can ensure you have time to sell an existing property when purchasing a new home, without the added stress of having to line up, and time settlement dates. There are many features of a bridging loan which include utilising flexible lending criteria, being fast to arrange, utilisation of an interest-only bridging loan and being convenient.

Our team at Greenline can provide you with the lowest bridging loan rates and answer any questions you may have about the loan approval process.

Construction loans

A construction loan is commonly referred to as a drawn-down loan, as the loan is drawn down progressively to pay for each stage of the construction process. Generally, for the first 12 months of the loan the loan is based on an interest only basis, then the loan will generally revert to principal and interest payments. A major benefit of a construction loan for many people is the advantage of managing your cash flow effectively throughout the building stages.

A construction loan generally contains 5 stages which trigger the progression of the draw down. The 5 stages include slab down or the base, frame stage, lockup, fixing and completion. Get in contact with our experienced team at Greenline Home Loans who can assist you with any further questions about the process or information regarding construction loans.

Cash out – equity release

A cash out/equity release may be the best option if you are looking to meet some personal goals such as renovating your home. One of the main benefits of owning your home is being able to have access to the equity in your property and use it as collateral when you are looking to make home improvements such as renovations.

The features of a cash out equity release include prolonged repayment terms, a possibility of tax-deductible interest, lower interest rates and fixed interest.

Reach out to Greenline Home Loans today!

If you have been considering buying your first home, buying a residential property or wanting a residential investment property loan and are looking for the best home loans, get in touch with our team of experienced brokers at Greenline Home Loans. We have access to 50 lenders and a strong relationship with several major banks to assist you and offer a solution to suit your needs.

At Greenline Home Loans we will tailor the best solution for your needs and walk with you hand in hand from the first day you consider a residential home through to the option of home loan refinancing. Contact our friendly team of brokers to speak about low rate home loans on 1800 705 505 to get started today!